Graph of the day: Trump, Powell creates a potential opportunity to buy Bitcoin



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Has Trump's criticism turned into a buying opportunity, or will it get worse for digital currency before it improves? The graph is mixed. Here's what to look for for business opportunities.

President Donald Trump said that he was crypto-currencies, stating that they "are not money, and that their value is very volatile and based on air ". Trump's statements followed criticism from Fed chief Jerome Powell against Facebook.

Bitcoin plunged 10% to $ 10,175, after briefly falling below the psychological threshold of $ 10,000. From a technical point of view, though the upward trend since the trough of December 2018 is not over, its stamina has been questioned, while two indicators suggest that prices could continue to plummet .

BTC Daily Chart

The first positive sign for Bitcoin is enough demand to support the $ 10,000 price level. Many analysts and investors have called the rounded psychological number of red line. The 50 DMAs corresponding to the July minimums reveal the importance of this level as a supply / demand pressure point.

Although the series of peaks and troughs is still in an ascending formation, it has recently weakened. July's inability to maintain the upward trend from the June 13,764 high of June 25 revealed weak demand. Another problem with the trend was when prices fell to the July 2 level of $ 9,745. To be clear, as long as this level is maintained, the trend is still on the rise, but investors' cautiousness about the proximity of this minimum could become a self-fulfilling prophecy, forcing the price downward to form that lower trough. a new downtrend.

The RSI provided a negative divergence, falling below its July low, as prices remained above theirs. As this is a dynamic indicator, prices could follow lower.

The MACD's short AMM found lower resistance than the longer MA, demonstrating that current prices are low compared to longer prices, triggering a sell order. Although, unlike the RSI, it is a delayed indicator, it could send a stronger signal at this time. Since, unlike the RSI, it is a lagging indicator, its current weakness partly reflects the previous rebound, not the current decline, which makes this bearish behavior all the more alarming.

Trading Strategies

Conservative traders will wait until the trend establishes a trajectory with a clear trajectory of peaks and troughs in the same direction.

Moderate traders may come back when the price falls below the July lows and meets resistance during a return movement, with at least one long red candle engulfing a green candle or a small candle of each color.

Aggressive traders can go long on the near of July 2, $ 9,745 low.

Trade sample

  • Admission: $ 10,245
  • Stop-Loss: $ 9,745
  • Risk: $ 500
  • Target: $ 11,745
  • Reward: $ 1,500
  • Ratio risk / reward: 1: 3

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